BUDGETING IN PAKISTAN

Allocation of money
Statement
of
receipt
and
expenditure
A plan of activities in a time
period
Relating
cost
to
available
resources

PURPOSE OF BUDGETING
To formulate the objectives of
development
To provide means of coordinating
activities of different departments
To provide bases for comparison of
achievement of planned objectives
from time to time
To streamline the management of
public funds

SIGNIFICANCE OF BUDGET
First step in implementing plan
Cooperation is secured in organ
Operation is controlled
Organizational weakness are removed
Balance programme are developed keeping in
view the resources

OBJECTIVES OF BUDGETING
Planning the activities
Coordinating the activities
Controlling the activities

FUNCTIONS OF BUDGETING
Provide operational cost and time
frame for execution of activities
Delegates implementation
authority
Control and evaluate performance

PHASES OF BUDGETING
Identification of activities
Identifications of 4 Ms
Costing of resources/bases of costing trends,
inflation etc
Presentation as per guidelines
Getting approval from C/authority

TYPES OF BUDGETING
Line Item budget

Traditional budget

activities oriented

being used in education

PERFORMANCE BUDGET

Management oriented
Compare actual and estimated
result

Unit cost

Objective oriented

PPBS

Output oriented budget

Based on system approach
Functions
Taxonomic, Classification of
activities wrt objectives and goals
Analytical, compare cost with
outcomes find out alternates
Projective long range planning of
inputs

STEPS OF PPBS
1. Situation analysis
2. Judging suitability of planned activities in the
achievements of the activities
3. Look for alternatives to achieve objectives set up a
hierarchy of program
4. Allocate inputs
5. Phase of inputs for each programmers
6. Prepare budget with
7. Item wise programme
8. matching the actual and planned output
9. -planning inputs for future
10. Setting up a machinery for review and analysis of
achievements of objectives

 Annual budget
Once a year
Supplement Budget
Any time
Non Recurring Budget
For building etc
Recurring Budget
For salaries etc

Deficit/Deficiency budget
To overcome the deficit if any
Special Budget
For special funds
Zero Based Budget
A fresh attempt to make budget with no
previous commitments.

BUDGET PROCEDURE IN
PAKISTAN
FORMULATION
AUTHORIZATION
IMPLEMENTATION
REVIEW

 PROCEDURE FOR DEVELOPMENAL

BUDGET
PROCEDURE FOR NON
DEVELOPMENTAL BUDGET
ADP/PSDP PROCEDURE

BOTTLENECKS IN
BUDGETING

Unreliable data
Budgeting cuts
Development and Non development
Over and underestimation of projects
separation of planning and budgeting
Mismatch of phasing and release of
funds
Delay in release of funds
complicated procedure